Unilever's Strategic Human Resource Management

This assignment analyzes Unilever's implementation of strategic human resource management (HRM) to effectively manage its workforce. It explores various HRM practices such as flexible working hours, job rotation, training, and compensation strategies. The analysis also highlights Unilever's commitment to work-life balance, equal opportunities, and compliance with relevant employment legislation. The assignment concludes by assessing the impact of these HRM practices on employee outcomes, organizational performance, and financial results.

MANAGING HUMAN
RESOURCES

INTRODUCTION
Managing Human Resources occupies an imperative role in smooth functioning of an
organization and is considered to make a large contribute in the success of a business unit. It is
important for corporates and specifically the Human Resource team to understand various
concepts of Human Resource Management (HRM). In pursuance to the same the instant report
elaborates on various aspects of HR being practised in Unilever such as flexible working
practices, various forms of discrimination and performance management of employees at
workplace. In addition, the implications of adopting these practices within the organization
particularly on the line managers and employees have been illustrated.
TASK 1
1.1
Illustration 1: Guest Model of HRM
HRM
STRATEGY
HRM
PRACTICES
 Appraisal
 Training
 Compensat
ion
HR OUTCOMES
 Quality
 Flexibility
BEHAVIORAL
OUTCOMES
 Cooperatio
n
 Motivation
 Citizenship
FINANCIAL
OUTCOMES
 Profit
 ROI
PERFORMANC
E OUTCOMES
 Innovation
 Productivit
y

The Guest Model of HRM was propounded by David Guest to primarily differentiate
between practices followed under personnel management and HRM (Boselie, 2010). The model
considers the employees as an asset to the company and in accordance to the same has developed
the following 6 components of HRM: HRM Strategies: The model suggests that HRM begins with formulation of HR planning
in accordance to the requirements of the workforce. This enables the management to
promote motivation and satisfaction level among the employees. HR Practices: The fundamental activities of staffing, training, development and
documentation are undertaken by the department. HR Outcomes: This component infers to the endeavour of reducing the difference
between the actual results being realized by the organization and the expected
consequences determined by the management (Steiner, 2010). In pursuance to the same
every attempt is made by the entity to offer favourable working environment, offer
incentives and so on. Behavioural Outcomes: In order to develop a motivated and engaged workforce, various
measures are undertaken to strengthen the working culture. Primarily, the psychological
needs of employees are catered to by the company. Performance Outcomes: The actual impact of various practices adopted by the
management is analyzed through the manner in which the employees are performing. It is

studied in terms of productivity, retention rate, absenteeism, creativity, etc. shown by the
employees of the company.
 Financial Outcomes: The profits and return on investment realized by the organization is
studied, as it is directly influenced by the HR practices prevalent within the internal
system (Jackson, Schuler and Jiang, 2014).
1.2
A fundamental distinction between the practice of personnel management and HRM is
proficiently established through the respective definitions provided by Professor John Storey. In
accordance to him HRM functions with a strategic approach which considers employees as an
asset to a business unit, rather than just a resource to achieve the aims and objectives. Hence,
focuses on satisfying the needs of employees at a workplace for realizing higher productivity at
micro as well as macro level of an enterprise (Bloom and Van Reenen, 2011). As against this,
personnel management/IR practices consider employees as mere resources which shall be
utilized at an optimum level to attain the aims and objectives in an efficient manner. It can also
be termed as hard HRM, which requires employees to function within the boundaries of rules
and regulations of the enterprise.
The focus of personnel management/IR practices is on maximizing the profits being
earned by an organization whereas the practices of HRM has an integrated approach to further
the welfare of employees along with that of the corporate (Bamberger, Biron and Meshoulam,
2014). It has been observed that Unilever has adopted the practice of HRM and in furtherance to
the same it considers it employees as the most valuable asset. It seeks to nurture its employees by
offering them a favourable environment which aids them in personal development a s well as
career growth.
Dimensions Personnel and IR HRM
Nature of relations Pluralist Unitarist
Managerial risk Monitoring Nurturing
Management actions Procedures Based on business needs
Above table being present highlights the main difference in between personnel and IR and
HRM with regard to Unilever. For instance in case of managerial risk associated in personnel

and IR monitoring of employees on continuous basis within Unilever has to be carried out so as
to know whether staff members are performing efficiently or not. Apart from this, in case of
HRM nurturing is carried out where promotion of all the employees takes place and it directly
acts as major source of motivation. In case of management action procedures are followed for
instance if Unilever is indulged into practices of finding out solution to the problem being faced
then in such case proper procedures are employed so that productivity of the business can be well
maintained with the help of this. Apart from this, in case of HRM management actions are taken
as per the business needs where Unilever has to identify its actual needs on the basis of which
top authorities take action.
1.3
The practices of Strategic HRM have an integrated approach which focuses on
development of employees along with increasing the overall productivity of the corporate
(Werner and DeSimone, 2011). In pursuance to the same organizations practising SHRM ensure
an optimum level of involvement of employees in the decision-making process. It aims to
achieve a mutual development of employees as well as business. In furtherance to this varied
impact can be witnessed on the Line Manager and the employees of Unilever as well. Line Managers of the company are the medium through which SHRM can be
implemented to realize the expected consequences. Effective policies and strategies are
implemented by the line manager to ensure welfare of the employees as well as utilize
the capabilities of each of them at an optimum level. Every effort to make a favourable
and comfortable environment within the organization is made by the line managers of
Unilever. Line managers is essence act as mediators between the top management and
the employees, to ensure effective execution of the policies. Hence, their primary
responsibility is to ensure coordination among the workforce as well as the authorities.
For instance in case if line managers of Unilever are indulged into practices of
developing strategic approach of HRM then in such case they can recommend proper
ideas and thoughts which can be implemented within the business for effective
management of human resource. Further, this allows in understanding actual
requirement of employees in better manner.
 Employees are the ones who directly benefit from the execution of SHRM (Anca-Ioana,
2013). It is important to note that employee remains to be one of the major focus areas

of SHRM and hence, are tend to realize positive impacts, especially in the form of
personal development along with professional enhancement. For instance if Unilever
consider its employees in developing strategic approach to HRM then in such case they
can know their real importance within the workplace and this will act as motivational
tool.
TASK 2
2.1
Illustration 2: Flexibility Model in Unilever
Source: Flexibility Model: A Critical Analysis, 2012.
In order to attain a competitive edge in the highly competitive market of the present
world, it is imperative for the corporates to develop a favourable and comfortable working
environment for the workforce (Yuan, Zhongfeng and Yi, 2010). One of the best manners for
accomplishment of this scenario is adopting flexible practices and policies for the internal system
of working. In furtherance to the same, Unilever has adopted various measures to make a flexible
and supportive culture within the company for enhancing the productivity and quality level at
micro as well as macro level. In consequence to this amendment in the system, high
responsiveness has been witnessed from the employees in the form of increased efficiency level.
It has largely impacted the working culture, along with efficiently catering to differentiation

already existing in the company. In other words, the management has adopted an approach of
equality, however, it specifically address the differentiation existing within the system. In the
drive to introduce new and innovative practices within the internal system, the management now
offers the facility of part time jobs, job rotation, work from home, flexible wage system and so
on. For instance, through the facility of part-time Unilever shall offer the employees to serve
only limited hours of job at work, on the other hand through the facility of flexi time, the
company allows the employees to work in accordance to their work timings but mandate a fixed
number of hours to be served. Unilever has also adopted the facility of fixed contract wherein a
term contract shall be entered into between the parties for a limited time of services. This has led
to development of a culture where everyone works in a disciplined manner without being the
boundaries of stringent rules and regulations. It has also been observed that the creative team of
the company has been making the most out of these leniencies offered by the management and
has also been producing highly innovative ideas for product development.
2.2
Unilever operates at a large level and is home to number of employees. Hence, the
company in pursuance to its practice of HRM, undertake every effort to strengthen the working
culture of the organization. One of the best manners in which this can be executed in Unilever is
by offering following flexibilities to the employees: Flexible working hours: The company can take an initiative to provide flexibility in the
working hours to employees. It can be in the form of lenient work timings or the scope to
complete the working hours within a week or month, rather than mandatorily satisfying
daily working hours. Job Rotation Method: Frequent or regular rotation of jobs shall be encouraged to break
the monotony and thereby, increase the productivity. It has been often observed that
employees undertaking the same task for a longer duration, tend to deteriorate the quality
or productivity of the output. Part-time working: By offering this facility the company can lure enthusiastic and fresh
talent (Aswathappa, 2013). This shall enable Unilever to create a diversified staff and
constantly improvise the working practices within the entity.

 Working from home: This has become one of the most common forms of flexible
approaches preferred by employees in the present times. Hence, Unilever shall adopt this
practice for feasible profiles.
Some other forms of flexibilities are also present which are being provided by Unilever to its
staff members so that they can contribute maximum in the business affairs. Location linked
flexibility is one of them where staff members are allowed to change their working location as
per their convenience. Work time flexibility is provided by Unilever where employees can adjust
time of working as per their need and in turn their contribution in the business affairs increases.
So, these types of flexibilities are most crucial within Unilever and with the help of this it is
possible for company to manage workforce in effective manner.
2.3
Flexible working is the most preferable attribute of any business organization from the
perspective of both employers and employees. It is considered to result into high productivity for
corporates and work-life balance for the employees as it effectively accommodates the needs of
staff members while catering to the requirements of the business (Kossek and Ruderman, 2012).
In the case of Unilever, it has been observed that introduction of flexibilities has enabled the
employees to strike a balance between the work and personal life. This in turn has resulted into a
major source of motivation for the employees of the company as well as has increased the sense
of belongingness. In addition, much of the profits incurred by the company can be attributed to
these innovative measures and has also enabled the management to function in a cost effective
manner. It has been observed in the entity that there is no need to conduct frequent training and
development sessions for increasing motivational level within the workforce. For instance if the
employees are able to avail flexible services at workplace and undertake their work as per
convenience, then it is most likely that their motivation level remains to be high. In such a
scenario the management may not be required to invest much time and money on trainings for
enhancing the motivation level. However, they may still be required to conduct training sessions
for sharpening of knowledge and skills level. Therefore, Unilever has realized high productivity
and greater profits with introduction of these practices whereas the employees have experienced
development in personal life along with the growth in professional life.

2.4
The labour market of the nation undergoes frequent changes with varying trends and
market conditions. For instance, the effect of Brexit shall directly impact the policies of the
labour market, which would impact the working conditions for employees (Freedland and et. al.,
2016). Some of the biggest concerns of the market is assure growth in the wages, healthy
working conditions, flexibility in the internal policies for employees, and to regulate the
unemployment rate. Therefore, in pursuance to the same new policies and regulations are
introduced in the market on a consistent basis to assure favourable working conditions within the
corporate culture of the nation. If a policy with respect to the working conditions is published,
then all the business houses would be required to incorporate the said change and make
amendments to the existing policies and practices. It is an established fact, labour market has a
strong impact on the policies and strategies developed by the business units in respect to their
workforce. In pursuance to the same, the rules and regulations enacted by this market assures
healthy working conditions for the company along with presence of the element of flexibility.
Changes in the labour market has been witnessed in large number of conditions where women
have started to go back to work and the main reason behind same is presence of effective
working practices. It has allowed female employees to work as male one and the overall results
are favourable. Apart from this, more graduate are easily available in the market where business
can easily hire them for conducting operations in the market and this can act as development tool
for the company.
TASK 3
3.1
Discrimination in business organization refers to unethical treatment furthered by the
employers towards the employees or otherwise. Activities such as taking biased decisions,
favouring one over the other on unreasonable basis and so on. For instance, discrimination on the
basis of race or colour is very common in the nation and hence can be seen in the process of
recruitments or otherwise in business organizations (Hepple, 2010). Some of the most common
discriminations practised in corporates are as follows: Gender Discrimination: It is perceived by people that men are more efficient than
women in undertaking technical tasks and hence, organization often discriminate

between them in the process of recruitment. Further, it has also been observed the
average salary offered to men is always higher than that offered to women. Disability Discrimination: It is a general trend to reject disabled candidates at the time
of selection, irrespective of high qualifications or skills possessed by such an individual.
In addition, the practise of bullying or maltreatment towards such people amounts to an
act of discrimination (Wadham and et. al., 2010). Racial Discrimination: It has been often observed that people are discriminated against
if they are black, or are not English. There have been an instance in Unilever, wherein a
candidate was rejected for the post of sales as he belonged to a different nationality.
 Maternity and Pregnancy: Females often face issues while claiming leaves for these
causes. Though Unilever has drafted regulations in favor of women employees, their
some women who have faced problems while claiming holidays for these causes.
3.2
Unilever has a diversified workforce and hence, has an increased probability of
occurrence of unethical acts which may amount to breach of provisions of applicable legal
framework. To avoid instances wherein the management fails to provide equal opportunities to a
employees, leading to a chaos within the internal system of the company, various initiative have
been undertaken by the company. In pursuance to the same the management of the company has
adopted the practice of adhering to the provisions of Equal opportunities Act, 2010 in the
following manner:
 Civil rights of each and every employee of the company are strictly protected against
any wrongful activities.
 The company has adopted policy of cooperating with women by providing pregnancy
and maternity leaves for a reasonable duration of time.
 A strict recruitment policy is being practised to not reject candidates on the basis of
unfair means and provide equal opportunities to all.
 A strict no-discrimination practice has been mandated at the managerial level as well as
at the lower level, in contradiction of which the defaulter is liable to face strict actions
which can also be in the form of termination of job.

3.3
In the modern world every business unit strives to maintain a diversified workforce, in
order to develop a holistic approach within the internal system of the company as well as cater to
varied needs of the business in the most efficient manner. This is one of the most popular way of
attaining competitive edge in the market as well as reflect a highly efficacious workforce in the
market (Freedland and Kountouris, 2012). In pursuance to the same the recruiters of Unilever
have been specifically trained to recruit highly qualified and varied candidates for the entity as it
develops a highly self-sufficient workforce with an immense level of efficiency. Also, the
company has the culture to promote team work within employees from varied backgrounds.
Hence, in such situations maintenance of a diversifies workforce can sometimes be a
cumbersome process and can lead to direct or indirect discrimination. In order to subdue eruption
of such situations, the company has adopted strict rules and regulations to ensure compliance
with various provisions of the act. This further ensures provision of equal opportunities to each
one of the employee in the diversified workforce. Moreover, special facilities for disabled
candidates have been introduced in the company to assure provision of equivalent opportunities
to them. For delivering equal opportunities to the staff members it is possible for Unilever to
develop its own policy linked with equal opportunity and through this large number of benefits
can be delivered to the staff members such as monetary as per their expectations. Apart from
this, equal opportunity policy can encourage business to work for the welfare of employees and
this can surely act as development tool for the company in the market.
TASK 4
4.1
Performance management is a process of evaluating work performance of staff members
in order to know the areas where they are lacking behind (Performance Management Technique,
2016). Unilever has adopted methods of performance management for enhancing employees
potential and they can easily understand the ability or traits of a person for better judgement.
These methods are useful for future growth and development of the Unilever. PM is generally
done in a proper method whose methods are discussed below: Traits method: Unilever can use this method in a regular basis by which manger can
evaluate employee performance in an easy way. Leader use this method to analyze

workers attitude towards the work. This can assist for assignment of work according to
their work ability. This is also helpful for raising employee satisfaction by using their
traits in an appropriate manner. But the major drawback of this method is employee de-
motivation because of in completion of tasks.
 Behavioural method: Unilever has adopted this method for team building in the
organization. Of course, effective management has assessed the development of team but
team work is successful when all team members have same opinion towards the
objectives.
Both approaches are helpful for performance management but traits method is more
appropriate according to the Unilever work environment. In addition a team has been installed to
monitor the activities of the employee and ensure the effectiveness of each and every employee.
The team also control the activities of the employees and restricts them within the permitted
boundaries. Further, Unilever has developed a team which on a regular basis take feedbacks from
the employees to ensure the quality of performance as well as ascertain the developmental needs.
4.2
Simple logic behind the welfare scheme is to maintain health and satisfied work
environment for better relation in between employees at Unilever. The basic reason of providing
all the facilities mentioned below is to raise the worker living standard. All these practises are
summarized as follows:
 Unilever provide healthy working environment in which employees mental and physical
heath are considered. The internal working conditions of the enterprise is highly
satisfactory from the perspective of the employees, and is completely in accordance to the
legislation of Health and Safety at Workplace.
 Company also seeks to provide economic benefits such as compensations and monetary
incentives for their welfare. The employees of the entity have been observe to be satisfied
from this scheme and hence, this welfare scheme has proved to be successful for them.
 Enterprise facilitated medical benefits along with education allowances for their children,
petrol convenience, refreshment allowances and so on. With the assistance of these
benefits a sense of belongingness has been developed among the workforce of the entity.
In addition, the level of literacy among the families of the ground staff has observed to
increase.

 At workplace hygienic and safe drinking water facility has provided by the enterprise for
workers health issues. Due to maintenance of hygiene level none of the employees have
faced a health issues due to consumption of water in the premises of the company. To
ensure the same a regular examination of the same is also conducted by the authorities.
 First aid appliances are provided by the company at the time of minor accidents. The
workforce is made available with medical help instantly for minor injuries, in result of
which no serious harm has been caused to the employees.
 Proper lightning facility is provided by the management so that workers do their work
safely in the night duties. The whole premises is completely visible in the dark and there
is scope for any accidents. Also appropriate amount of security has been arranged.
 Unilever is providing adequate number of rest rooms for their worker and separate
women rooms for the ladies privacy concern. The women employees of the company feel
completely safe working with the company and have not faced any kind of accidents or
discomforts while working with them.
 It is also providing accurate number of separate urinals for female and male staff at work
place.
The purpose of labour welfare done by the Unilever is to bring out the improvement in
workers personality to make a better working environment.
4.3
Health and safety legislations have been framed for the workers by which Unilever
focuses on workplace related illness and tries to reduce the ratio of injuries with the help of
safety rules and regulations under heath and safety legislations and they are mentioned below:
 Health and safety at Work Act, 1974: In this act employee heath and safety related
concerns are considered by Unilever for delivering safe and peaceful working
environment. This can assists employee satisfaction and growth of organization. New
equipment, substance and procedures are introduced under this act. Impact of this act on
Unilever is that it supports in providing safe working environment to workforce where
hygienic factors are considered to be important. Company apply this act to all employees
including permanent and temporary at work place (Policy Paper, 2016). Through this act
it is possible for business to deliver favourable working environment to the staff members
so that they can carry out operations efficiently. Further, health and safety at work

focuses on ensuring whether proper equipments are present within the workplace which
can protect staff members from damages taking place due to accidents etc. Therefore, it is
quite significant for Unilever in every possible manner. Implementation of health and
safety act within workplace has some negative and positive implications for Unilever.
The positive implication is that all the employees working in Unilever can conduct
operations safely and chances of accidents will reduce up to extent. Apart from this, all
the employees can easily participate in the business affairs on their own. On the other
hand negative implication is that business has to modify its internal operations and
systems as per the safety act. For instance if Unilever does not complies with the safety
legislation then in such case government has right to take strict action against company
and can lead to large number of damages. Apart from this, if business complies with the
legislation then in such case all the internal operations can be carried out smoothly.
4.4
With the help of work life balance employees maintain a balance between their personal
and professional life which can assist individual to fulfil their work and social responsibility in a
easy and better manner (Steiner, 2010). Unilever has adopted this term for reduction of poor
work life balance including stress, depression and other personal issues. Manager takes tanning
sessions for managing better work life balance in which leader tries to motivate the individual
along with this how manger uses the term time management for better work life balance with the
help of tools which are discussed below:
 Individual can make plan with their friends and family that can help the worker to
enhance work efficiency. For instance staff member working in Tesco can take advice
from family and friends with the help of which work life balance can be managed easily.
 Workers may spend their time on social media sites and making personal calls with their
special one for minimizing the stress level.
 Employees working in Unilever can determine the main priorities and they can set
specific goals on the basis of same.
 Staff members must try to work smartly but not harder where they can utilize their skills
and knowledge up to maximum.

CONCLUSION
The management of Unilever has adopted the practice of strategic HRM in order to
manage its most valuable asset of its employees. The development of the workforce is given
utmost importance along with growth of its business. In pursuance to the same various
innovative practices of flexible working hours and timings, job rotation, and so on have been
introduced in the system to develop a flexible and supportive working environment.
Furthermore, the entity has adopted strict compliance rules in respect to Equal Opportunities Act,
Employment Rights and various other applicable acts. The company has effectively enabled the
employees to attain a work-life balance, which is one of the most remarkable achievement for
Unilever.